Colossus Aims to Revolutionize Credit Cards with Ethereum Layer-2 Network
- Colossus is developing a credit card system using an Ethereum layer-2 network to bypass Visa and Mastercard.
- The startup leverages the GENIUS Act to avoid traditional KYC and AML requirements.
- Joseph Delong, former SushiSwap CTO, leads the initiative with plans for a March launch.
- Colossus raised $500,000 in pre-seed funding, valuing the company at $10 million.
- UnCash’s recent shutdown highlights challenges in the crypto-linked card market.
Colossus aims to revolutionize payment systems by integrating issuer, processor, and settlement functions into its Ethereum layer-2 network, potentially reducing fees and enhancing privacy by minimizing customer data collection. This approach challenges established networks like Mastercard and Visa while addressing regulatory concerns under the GENIUS Act.
With $500,000 in funding and a valuation of $10 million, Colossus seeks to provide a viable alternative to traditional credit cards by leveraging blockchain technology for more efficient transactions without conventional banking intermediaries. Source
